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Iowa Brokerage CEO Indicted in $200M Fraud Scheme

Russ Wasendorf faces up to 155 years

By the Associated Press

Posted Aug 13, 2012 5:59 PM CDT

(AP) – The founder of a bankrupt Iowa-based brokerage accused in a $200 million fraud scheme has been indicted on 31 counts of making false statements to regulators. A federal grand jury returned the indictment today against Peregrine Financial Group CEO Russ Wasendorf Sr. Wasendorf has been jailed since his arrest last month, which came while he was hospitalized following a failed suicide attempt outside Peregrine's office in Cedar Falls.

The indictment says Wasendorf submitted documents to the US Commodity Futures Trading Commission that overstated the amount of customer money held by Peregrine by "at least tens of millions of dollars." If convicted, Wasendorf faces up to 155 years in prison. Authorities say Wasendorf left a detailed suicide note confessing to a 20-year scheme to commit fraud and embezzle customer funds.

This Monday, April 4, 2011 file photo shows Russ Wasendorf, Sr., CEO of Peregrine Financial Group, Inc. in Cedar Rapids, Iowa.
This Monday, April 4, 2011 file photo shows Russ Wasendorf, Sr., CEO of Peregrine Financial Group, Inc. in Cedar Rapids, Iowa.   (AP Photo/Waterloo Courier, Rick Chase, File)
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COMMENTS
Showing 3 of 33 comments
schmidtkoff
Aug 14, 2012 6:04 PM CDT
i still don't understand suicide as the solution. but i'm beginning to convince myself that those who do off themselves are cowards. not depressed. not deprived nor fragile. cowards. it takes more courage to live than to kill one's self. if i were he and i had done what he had done, well yeah, i'd be ashamed. i'd not want to face public opinion on what a scumbag i was. i wouldn't want to go to prison. but i surely would not want to kill myself over it. i would hate it but not enough to say bye bye to life. i would hate that loss of freedom. i'd feel doomed. but i would swallow that pill, get into the system and adapt. as best as one can adapt to life incarcerated. 
gilgordan
Aug 14, 2012 3:14 PM CDT
Killing or attempting to kill oneself is the latest of gimmicks these crooks have to protect what they stole for their estates, which are not touchable under law. Once dead that's it. Once again Ken Lay started the trend with Enron. Scum even when offing themselves.  Here's a toast to Russ, that he live a long a poverty stricken life on the street, after a appropriate term in prison where he can become sodomized daily.
John
Aug 14, 2012 8:39 AM CDT
Rips everyone off and then tries to kill himself?  What a real piece of shit.  Well, now he will spend the rest of his life buns up kneeling. 

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fraud • indictment • brokerage • federal grand jury • Peregrine Financial Group • Russell Wasendorf

 
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